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1 

RECONSTRUCTION 
PROBLEMS 

28 








^^P^ 




PAMPHLETS 
IN THIS SERIES 


SCIENTIFIG 




PUBLISHED 






Officers' Guide to Civil 
Careers 


BUSINESS 




The Aims of RecoD- 






struction 
New Fields for British 


MANAGEMENT 




Engineering 






Rural Industries 






Food Production 


! 




Juvenile Employment 


1 




Art and Indu^ry 






Industrial Councils 






State Regulation of 
Wages 






Prices 






Land Settlement 






Domestic Service 






The Classics in British 
Education 






Natural Science in British 
Education 






Public Heahh I & II. 






Electrical Development 






Town Planning 






Scientific Business 
Management 


: .''■ 




and others (see p. 16) 


TWO Pence 




TO BE PUBLISHED 
The Nation and the 


MINISTRY OF 




Fishing Industry 
Transport 


RECONSTRUCTION 




Trusts 
Poor Law Reform 


1919 






The information contained in this pamphlet 

is subject to any modifications that may be 

made subsequently Jo the date of going to press y 

4 June, 1919, 



Ok 



^ RECONSTRUCTION PROBLEMS 
^^ 
^\ 28 

J Scientific Business Management 

THE prosperity of an indu^ry and of every man concerned 
in it is intimately bound up with efficiency of manage- 
ment. In the pa^ management has often been some- 
what mechanical in its tendency, ignoring the human 
element in produ6lion and di^ribution. To-day, more 
than ever, it is realised that the welfare of the worker is not 
only a vital matter for the community, but also from the point 
of view of the employer a matter of expediency. There is thus 
the double ^imulus — the good employer profits by his 
" goodness." What is known as Scientific Business Management 
embraces the problem in all its aspeds — human and material. 
It certainly does not mean, though it can be perverted in that 
dire(51:ion, getting the la^ ounce out of the workman only to 
ca^ him aside when prematurely exhau^ed. That is not 
management but mismanagement. 

For convenience of treatment the subjedl can be divided 
into three sedlions — diredion, equipment and produdtion. 
In all tliree the wise employer will address himself to the task 
of creating a spirit of " team work " among his employees, 
while at the same time employing the be^ methods and devices 
for the promotion of their well-being and the increase of 
produ6tion. 

The employer mu^ have a definite business goal towards 
which he aspires and be able to inffl the conception of that ideal 
into every employee under him, whether of high or low rank. 
It is the fir^ essential of a projedt that it shoi3d have defined 
objeds so that its efforts may not be defeated by indecision or 
weakness of purpose. It is also requisite that each participant 
should be fuQy cognisant of the firm's ambitions that the 
employees may be as much interested as is the employer himself. 
Care must be exercised in the selecting, engaging and training 
of workers so that each may be fitted into the occupation beS 
suited to the education, experience, mind and temperament 
possessed. One of the mo^ common causes of industrial and 
commercial inefficiency lies in improper vocational seledion. 
It causes loss not only to the employer but to the employee and 
the nation in general. Many workers have failed hopelessly at 
some occupations and been signal successes at others. It is 



RECONSTRUCTION PROBLEMS 



the employer's responsibility to see that the round peg is not 
in the square hole. Rules and regulations mu^ then be prepared 
by which the employees will be guided in their daily condud. 
Some workers may look askance at them, but it will be found 
diat when definite regulations are ju^ly Hved up to they have a 
decided influence in building the business on sound ^bundations 
and in moulding the character of its workpeople. 

Steps mu^ be taken to plan for, guide and dired employees 
through the channels of produdion and di^ribution. Proper 
planning and admini^ration plays a mo^ prominent part in the 
success of the firm, and not only the executive but also the 
admini^rative head or heads mu^ be able to plan procedure and 
issue in^rudions so that employees may be shown the best 
ways and means of executing their tasks in the minimum of time 
with the maximum of efficiency. The use of charts, demon^ra- 
tions, or written in^rudions may or may not be necessary, but 
the details should be so given that everyone is able to handle work 
without wa^e of time and have a recommended chain of operations 
in which it can be completed without unnecessary hesitation or 
needless delay. 

Accurate planning, or diredion, is pradically valueless unless 
the employer may be certain that his employees are capable of 
following his diredions and in^rudions in the manner desired. 
He mu^, therefore, be prepared to train them in the best possible 
methods of executing the work, to avoid unnecessary movements 
at their tasks, so that needless fatigue may be eliminated, and to 
achieve greater efficiency in the result. 

The Health of the Worker. 
In conjundion with specialised technical training, the 
employer mu^ assume the responsibility of educating his workers 
to the ordinary requirements of health regulations, and he mu^ 
do everything in his power to assi^ them to safeguard their 
health. Due attention mu^ be paid to the proper means of 
reducing noise and nerve shock in the work-place, and this can 
only be done by close ^udy of the surroundings in which they 
are employed and by giving proper consideration to the different 
influences bearing upon the worker's condition. Welfare work 
has made marvellous brides in the laft few years, and one of its 
mo^ prominent features is the introdudion of canteens for the 
provision of suitable meals for employees. Although a mo^ 
elementary ^ep, the necessity of proper su^enance has not been 
fully accepted as a fador in produdion. A hazily eaten sandwich, 
follt)wed by a period of lounging outside the work-place, is not 



TMP96-0246e8 



SCIENTIFIC BUSINESS MANAGEMENT 



conducive to good health and efficiency among workers. In the 
canteen each day's meals can be so adjured that pleasant variety is 
ensured while the consumers receive balanced proportions of 
food^ffs containing the measure of nutritive value essential to 
the physical and mental energy required for the type of occupation 
carried on/ Adequate feeding, like housing, is one of the mo^ 
pressing problems of the moment. 

The welfare work mu^ not, however, ^op there, for the 
employer mu^ carry it inside and outside the work-place. He 
should encourage the workers to enjoy good recreation, and for 
that purpose mu^ assi^ them personally and financially to 
participate in different forms of outdoor games that provide 
amusement and healthy exercise at one and the same time. 
Inside the work-place it demands scientific ^udy of labour-saving 
appliances and the proper re^ pauses demanded during the 
working hours, if the energy of the worker is to be conserved 
and over-exhau^on and ill-health prevented. 

A very easily organised form of exercise is the physical 
training that was known in the army as " physical jerks." Given 
the right type of in^rudor these exercises should provide, not 
only healthy physical recreation, but also the mental exhilaration 
and the atmosphere of good humour that are so valuable to 
those whose work tends to be monotonous. Any one who 
has seen a squad of soldiers thoroughly enjoying a half-hour 
of " physical jerks " will appreciate what effect they would have 
on the mental and physic^ welfare of workers. Initrudlors 
in the army were seleded partly for their gift of keeping their 
men interested and amused; a number of highly trained 
in^rudtors, qualified to organise all forms of sport are now 
available for civil work. Information should be sought from 
the Appointments Department, Mini^by of Labour, St. Ermin's 
Hotel, London, S.W. i. 

It is, of course, impossible in a brief pamphlet dealing with 
the whole subjedl of Business Management to cover the ground 
of welfare work. Employers desiring guidance and information 
on these questions will do well to study the memoranda 
issued by the Home Office. The fadtory inspedors also are 
always ready to give advice based on their wide experience. 

Personal Intercourse. 

The employer, as promoter, diredor, or managing diredor, 

mu^ remember that all direction should emanate from his 

office, and that his employees will largely look upon him not 

only as an employer but as a leader, educated to guide and 



RECONSTRUCTION PROBLEMS 



Simulate them towards a higher ^andard of intelledtuality or 
efficiency in Hfe than that to which they have been accu^omed. 
In his admiiii^rative capacity, therefore, he mu^ so arrange the 
duties of his executives that regular produdlion, co^ and efficiency 
charts are rendered to him on the operation of the several sections 
of his enterprise. He mu^ not, however, rely only upon stati^ics 
to prove tliat the be^ conditions possible are in evidence in his 
work-place. To ensure that efficient methods are in operation, 
he mu^ be thoroughly acquainted with each and every depart- 
ment in his organisation, and make it part of his diredtion to 
visit them at regular and frequent intervals, so that he may see 
for him.self whether returns and figures are supported by fads. 
This has a dual influence in successful control. It not only 
stimulates executive heads to the highest pitch of exadtitude in 
their effi^rts, but demon^rates to the employees that the employer 
is personally intere^ed in their v/elfare and is perfectly acquainted 
with the surroundings in which they work. A casual examination 
of efficiency charts would not indicate whether proper considera- 
tion was being given to ventilation, Hghting, heating, sanitation, 
and other fatigue influences, but visits to the different sedtions 
of the work-place certainly would. 

Many emplo^^ees never hear of their employers or administra- 
tive heads except v/hen they have to appear before them to be 
severely reprimanded, or when a notice is posted on the notice 
board. Were the employer to leave his office for a few minutes 
each morning, walk through the departments, or one or more 
departments if his plant were too large, making comments 
here and there and smoothing points of difficulty where they 
arose, he would make himself known to the workers and the 
feeling of suspicion and di^ru^ of him would rapidly evaporate. 
Ignorance of the unknown always creates a mi^aken suspicion 
of it and nothing but the clear Hght of knowledge wiU ever remove 
the feeling of di^ru^ which exi^s between Labour and Capital. 

The introdudtion of a human atmosphere in commerce and 
induftry is one of the greater difficulties of to-day, and a fadlor 
in produdtion to which too much importance caimot be attached, 
With the increased education of the people has come an improved 
mental ^andard in the workers, and their attitude towards 
employers has altered accordingly. They now feel, rightly 
enough, that having ability, they should be consulted in some 
manner or other when indu^rial and commercial problems are 
being considered, since the decisions arrived at by their employers 
will affedt them materially as wage earners and pohtically as 
Trade Unioni^ 



SCIENTIFIC BUSINESS MANAGEMENT 



The present labour unreit is without doubt partly due to the 
small regard Capital has been inclined to pay to the opinion of 
Labour that it is fitted to adt and judge with the employer in 
important matters alfedting produdtion. A disgruntled labour 
sedion, not composed of merely ignorant workers, has been 
formed, having as its leaders eloquent but un^able extremis 
who, by sheer weight of the case again^ some employers, have 
been sblc to achieve a few vidories for their followers. The 
employer has, therefore, the difficult task of eliminating old 
causes of fridtion and cultivating good feeling between himself 
and his present employees. He mu^ at all times remember that 
they are an independent body and are not to be patronised, for 
patronage is a worse sin than oppression. 

Many employees, while anxious to participate in indu^rial and 
commercial recon^rudtion discussions, feel that if employers 
are to hold their respedt they mu^ be their intelledtual superiors. 
It therefore has to be accepted that leaders must be trained in 
the right manner as well as bom of the right mould, and in 
no branch of life is this demand more insi^ent than in business, 
upon the proper management of which not only the material 
but also 'the moral development of the nation is largely 
dependent. 

In management itself it is decidedly advantageous to cultivate 
the personal intere^ of the workers. Not only do they give 
closer attention to detail in their work, but a friendly atmosphere 
is created among them and the overhead employee co^ is 
greatly reduced. This is a much more important fadtor in success 
than is indicated on the surface. Much of the loss in present-day 
produdtion is caused not only by poor machinery and improper 
methods, but by the continual chopping and changing of the 
workpeople employed. A worker may be engaged to-day and 
discharged to-morrow, he (or she) may la^ a week or two, with 
success three months, but comparatively seldom longer than a 
year. It is here that the loss is occasioned in the labour turnover 
by new workers being trained to the task, by loss of output 
through machines or methods not being developed to their 
utmo^, and la^, but not leait, by the fadt that the worker never 
reaches the highe^ ^andard of efficiency in produdtion The 
human fadlor overcomes this difficulty to a great extent, for where 
there is a friendly spirit of under^anding between employer and 
employees there is generally greater harmony among the workers 
and executives themselves, and as a consequence when vacancies 
occur, exiting employees are usually anxious to introduce their 
own friends as candidates for the positions. Once this has been 



RECONSTRUCTION PROBLEMS 



Parted success will follow, for it is self-evident that a satisfactory 
employee intere^ed in the finn's welfare will never introduce 
a friend who would prove a ^umbHng block to his or her own 
progress. 

This personal intere^ can be carried further even than that, 
for the employer can demon^rate to the workers that by improving 
the ^andard of their efficiency, adding to their education, and 
assi^ng the firm to further successes, they will eventually 
reach a higher standard of Hving. Their emoluments and 
comforts will be increased proportionately and their promotion 
facilitated with the development of the concern. They can be 
induced by different schemes to offer sugge^ons for the improve- 
ment of methods or equipment, and the employer or diredor 
should never fail to show appreciation of a sugge^ion, no matter 
how small it is, or to reward it when its utiUtj' is clearly shown. 

The Question of Remuneration, 
Adequate remuneration is a subje6l that requires serious 
consideration, for the employer mu^ not only satisfy himself 
that the rates are fair and ju^, but mu^ be sure that they are in 
proportion to the wage-earning ability of the worker. The 
sy^em of payment will, of course, be governed by the type of 
business carried on, but there is no doubt that there have been 
many abuses of piece and time-rate wages on both sides, whether 
employers or employed, and that the subjedt is one worthy of 
open discussion by both parties to the contract . Where joint 
control is in operation this discussion is very much facilitated, 
as both sides of the que^ion can be easily considered in its local 
aspedls and thoroughly thrashed out. 

All bonus sy^ems mu^ be carefully examined and ^udied 
in their application as produdion promoters, for there is absolutely 
no doubt that a bonus or division of profits in some form ulti- 
mately proves to have a real influence on the scale of output 
achieved. It is not sufficient, however, that the foreman or head 
of a department should be the only one to receive a percentage 
on the volume of output from the employees. His remuneration 
is, of course, a necessity, but the adlual producers are even more 
entitled to it, and they naturally think so, than the man who, 
according to them, merely stimulates exertion. If it is sho^vn 
to the employees that they can always be certain of the wage 
estabHshed by the Trade Union, and can in addition earn a bonus 
or dividend of so much per cent, on increased production, they 
will very quickly learn that it is to their advantage to use brains 
and energy in the betterment of their work. It will also be found 



SCIENTIFIC BUSINESS MANAGEMENT 

that where a number of workers engaged on a like operation are 
co-operative in effort and are receiving a bonus on total produc- 
tion, the better workers will ^rive to eliminate those who are 
inefficient and less anxious to work hone^ly for their wages. 

Works Committees. 

Joint control, that is to say, control by representatives of 
workers and managers alike, requires serious consideration and 
different methods of operation for each type of business dealt 
with. Where the proper ^age of good feeling between employer 
and employed has been reached, it can be satisfactorily introduced, 
and if all the factors have been carefully examined and considered 
success will be almo^ certain. The time has probably not 
yet been reached in this country when the worker can actually 
participate in the financial organisation of the concern, but his 
co-operation on all points affeding hours, wages, equipment and 
working conditions is of enormous value, and it is on this basis 
that joint control should be considered. Where it is in operation, 
a Works Committee or council of employees' representatives and 
executive and admini^rative heads is formed, and in this body is 
ve^ed responsibihty to discuss and settle points affedling 
conditions of labour. Safety duties may be included among its 
special functions. There is evidence from experience that such 
an organisation may be extremely effedtive in keeping down 
accidents. At fir^ some httle hesitancy on the part of the 
managers to participate openly will be felt, and there may be 
a suspicion among employees that their representatives will 
be inclined to side with the executive and admini^rative heads, 
but as time goes on these prejudices will gradually be overcome. 
On the employer's side there may be a feeling that the employees' 
representatives will be inchned to adopt an antagoni^ic attitude, 
but tad and education will soon neutraUse any such incUnation, 
and the discussions will be brought to a ^ate where class 
hatred will be unknown and mutual development the only 
result desired. As the workers' representatives become more 
aUve to the tru^ placed in them, it will be they who will initiate 
improvements and they will be among the fir^ to Simulate their 
fellow-workers to a more equitable assumption of their portion 
of the responsibihty of production. 

Progressive Methods. 

The employer mu^ now be prepared to search the markets 
of the world for the very be^ equipment procurable. It changes 
daily, and the improvements effected are such that the benefits 
derived from the introduction of new equipment will more often 



RECONSTRUCTION PROBLEMS 



than not recompense the employer for scrapping the old appliance 
or method which it supplants. Methods vary possibly more 
than do machines, and the employer is therefore required to 
tody the conditions aflfedting his work-place, so that he may at 
lea^ be up-to-date if not ahead of his competitors. He mu^ be 
cognisant of the ways in which his equipment is used, making 
sure at all times that the highe^ ^andard of efficiency in pro- 
duction is obtained at a minimum of co^ consi^ent with ju^ce 
to all concerned. He mu^ try to see how other employers 
condudl their business, and with that objed in view mu^ always 
be prepared for education or new ideas. His tody should be 
continuous, for if it is not maintained the penalties are heavy and 
the time lo^ pradlically irrecoverable. 

One of the mo^ important fadors in the diredion of a concern 
lies in the co^ sy^em, which might be described as the pulse of 
the whole organisation. It is ^artHng how Httle attention some 
firms pay to efficient cotoig, for an improvised method is not 
sufficient if accuracy is to be assured- It is urgently important 
that the mo^ complete details should be entered in the calcula- 
tions, so that the em^ployer may know whether his concern 
is or is not being operated at a profit. It is therefore essential 
that no top be taken without due consideration being given 
to the co^ fadtors governing it. It is not sufficient that 
coding be completed in one diredlion only ; it mu^ be carried 
into every department and to every piece of work. There is, 
of course, the danger that its operation may become a burden 
to the firm, but it is easy enough to draw a di^indion between 
necessary and unnecessary ^ati^ics. Co^ng is, after all, only 
a scientific sub-division or analysis of the records that a firm 
should maintain, and the value of records Hes in their utility. 
Co^ reports should not be prepared unless they are to be used, 
but it is vitally important to business that every firm should 
carefully tody the necessary ^atistics. Many firms have been 
saved from financial ruin by a simple co^ analysis and many 
others could achieve much more success were they to adopt one, 
for it quickly demon^rates the sedtions from which failure may 
be expedted and where losses are being incurred through ineffi- 
ciency. It is immaterial whether it is a commercial or an 
indu^rial concern, for the same rules govern, and it is equally 
possible to apply coding methods to commercial as to indu^rial 
conditions. 

Having protedled these several features of his organisation, 
the employer has to be certain that his method of ^ock-keeping 
is such as to obviate chaos and to maintain order in all its sections. 



I 



SCIENTIFIC BUSINESS MANAGEMENT 



Not only mu^ every article be kept in a readily accessible manner, 
but the sy^em of record mu^ be accurate and simple in its adion. 
■Minimum and maximum ^ocks muft be definitely ^ated, issues 
and receipts mu^ be clearly indicated, and the " remain " either 
perpetually shown or be easily calculated. The ^atement of 
sources and prices is a matter of necessity and policy with the firm. 

If these elements in Diredlion have been safeguarded, it can 
safely be assumed that di^ribution and pubHcity will be as 
satisfadorily handled. The fir^ of these is important in linking 
up the producer with the consumer in such a way that regularity 
of supply and demand is maintained without spasmodic shortages 
or surpluses of supplies. Delays in di^ribution are not only 
a cause of annoyance to the consumer but of instabiUty in the 
market, and this eventually creates disordered indu^rial and 
commercial conditions, detrimental to the development of the 
nation generally. 

So much is heard of pubHcity that it almost seems imneces- 
sary to mention the subjedl, but the fact remains that pubHcity 
is not so extensively adopted by British business houses as by 
certain of our alHes, who use it for every conceivable purpose. 
Advertising at its be^ certainly reaches a higher level now than 
ever before, both art and science being caUed in aid. It has 
an undeniable power in increasing the pubHc demand for com- 
modities and is often the only means by which the producer 
can make his product known to the consumer. 

Attention to Equipment. 

Equipment taken in the sense that aU buildings, machinery, 
tools, appHances and methods are equipment, enters into business 
success in a manner that unfortunately has not been given the 
scientific consideration to which it is entitied. 

Starting with the adlual con^ru6tion of the buildings, the 
matter of fire prevention should receive serious consideration. 
Ventilation and heating are subjedts to which the ^ride^ 
attention must be given, because clear air and weU regulated 
heating have a stimulating effect on the employees, whereas a 
vitiated atmosphere and an over or imder-heated workroom 
have diredly opposite and seriously exhausting influences. 
Light and colour also play an important part, for the health 
of the workers can be seriously impaired by bad Hghting or 
injurious colour influences. The utmo^ use should be made of 
whatever Hghting space is possible, and its refledtion adjured 
to meet the type of work in hand, and the position of Hghcs 
in relation to the workers should be considered. Some attention 



RECONSTRUCTION PROBLEMS __ 

should be given to the wall colouring. Dead whites have a 
tendenqr to cause nerve ^rain, and dirty walls produce a decidedly 
depressing effect, and by absorbing light add to the cost. As 
a diredt contra^, the judicious use of properly toned yellows, 
greens and mauves will be found to have a Stimulating, re^ful 
and recuperative influence, according to the particular necessity 
of the work-place. It is when these fadtors in output are closely 
^udied that the real science of management is grasped. 

In an indu^rial plant operation in shifts that permit of the 
maximum use of equipment at a minimum of co^ plays an 
important part not only in production but in diftribution fadors. 
The six or eight-hour day is more pradticable than one would 
generally imagine, for if there are two regular shifts of six or 
eight hours each in one plant, the work produced is practically 
equal to that of two complete factories, provided the utmo^ 
scientific knowledge has been exercised in the selection of the 
equipment and the be^ ways of using it. With a lessened 
equipment co^ to be charged again^ the produCt, it can be sold 
at a lower figure and an increased consumption Stimulated in the 
pubUc. By this means alone much of the additional wages now 
demanded could be earned and paid without prejudice to either 
Capital or Labour. 

Labour-saving Devices. 

One of the greatest faCtors in the reduction of operating costs 
lies in the introduction of labour-saving appHances, which vary 
from the adding machine in the office to the heavy-weight 
conveyor in the faCtory. While Great Britain has not given a 
great deal of attention to these innovations, which in the laSl 
few years have reached a very high Standard of perfection, there 
is every indication that they will not be overlooked in the future. 
The United States of America has praCtically been the home of 
such inventions, and it is very evident that their use has materially 
assisted her to the position of industrial prominence she now 
occupies. JuSt as the telephone will link up two departments, 
so can the internal conveyors built for either fight papers or heavy 
goods link up a number of floors or even buildings. One of the 
wonders of modem scientific engineering Hes in the use of 
machines placed in rotation to one another and fed by traveUing 
conveyors on which the raw material virtually enters at one end 
of the factory and the finished produCt leaves at the other. There 
is a natural prejudice created by ignorance againSt the use of 
such labour-saving devices, but it muSt be remembered that they 
are of equal value to the employee and to the employer. They 

10 



SCIENTIFIC BUSINESS MANAGEMENT 

have to be viewed not only in their labour-saving values but as 
the eliminators of unnecessary physical movement in workers. 
In preventing unnecessary exertion they reduce the produdion 
coffc of commodities, wliich can then be sold to the public at 
lower prices than would be possible were manual labour only 
used. The reduced prices materially assi^ increased consump- 
tion, by which means a larger demand is automatically created. 
So it is that the wheel rotates until the complete circuit is 
accomplished and the benefits of these appHances are enjoyed 
by the very employee who, contrary to the expedation that 
his services could be dispensed with, is given further employ- 
ment in meeting the demand resulting from lower selling prices 
achieved by more scientific production. 

In both indu^rial and commercial life, firms have clung to 
old appliances for years after their utility has been worn out, for 
it has not been clearly recognised that money lost in scrapping old 
equipment and expended in the creation of new is more than 
recovered from the increased output and the reduced overhead 
operating co^. It is therefore essential that every appHance 
should be carefully examined at regular intervals to ensure that 
the utmo^ satisfadion is being obtained from it. Its produdion 
should be closely compared with that of newer creations and the 
difference in ultimate co^ accurately arrived at. 

Not only mu^ appHances be examined in this searching 
light but methods mu^ also be analysed, or the equipment will 
not have been completely surveyed. Antiquated methods are 
ju^ as dangerous as are old appliances, and they mu^, therefore, 
be dealt with in the same sharp manner. 

Much needless labour expense is incurred in the employment 
of workers who repeat or unnecessarily supplement the work of 
others, and it is always found that where such unessential 
employee power is evident, superfluous positions in the work- 
place are a(5hially created. It does not follow that because a 
large number of workers have a great deal of work to do that all 
of it is necessary. One of the valuable features of scientific 
management lies in its ability to reduce aU energy expenditure 
to that which is absolutely essential. It therefore adopts sy^ems 
which produce results by the mo^ diredt methods in the quicker 
and mo^ efficient ways. AU sy^ems or methods of operation 
should consequently be such that operation follows operation 
in uninterrupted sequence, so that continuity is maintained 
without unnecessary routing, machines, tools or exertion. This 
might be emphasised in the use of machinery to the operation of 
which due consideration should be given before erection is 

11 



RECONSTRUCTION PROBLEMS 



commenced. Each machine should be placed in such a way that 
it is in direct relation to other machines in the rotation cf 
operations necessary for the completion of any work. 

Production. 

In the fir^ place, the employees who diredtly produce mu^t 
be perfedly fitted for the occupations they intend to follow, and 
to ensure this many safeguards mu^ be adopted by the employer. 

A dired job or task analysis mu^ be made of every occupation 
incidental to the projects in which employment is to be found. 
In this analysis a description of each operation mu^ be given 
with accurate details of the type of person required to fill it, 
giving not only physical but also inteUedtual and moral essentials. 
Records mu^ be coUeded of the length of time necessary to 
learn the work, the ^andard of education required as a basis 
for training, and the po^ure of the worker during employment. 
A short hi^ory should also be given of the working surroundings, 
hours of employment, wages earnable, and the likeUhood and 
possibiUties of advancement. If full benefit is to be got from 
these data, they should be tabulated on readily accessible cards, 
and filed for reference when workers are to be engaged to fiU 
vacancies as they occur. 

The next ^ep is that of dealing with prospective employees. 
If at all possible, it is desirable that the employer should be 
satisfied that the candidates are physically fitted for the occupa- 
tions at which employment is to be given. This is unfortunately 
a delicate point with many, but it is nevertheless one that will 
have an enormous influence in raising the health ^andard of the 
people. If candidates can be induced to submit themselves 
to examination by a medical pradlitioner before being engaged, 
and if possible at regular intervals during employment, it not 
only safeguards their own health but also that of the other 
employees in the same work-place. This can sometimes be 
achieved by arranging for the works medical officer to examine 
the candidates as they present themselves, and by making 
employment conditional upon submission to medical examination 
with the other employees at regular intervals. 

The medical fitness of the candidates being satisfadtorily 
proved, the next ^ep is that of judging their techoical qualifica- 
tions for the new occupations. Many methods of sele6Hon are 
advocated, some of which are undoubtedly very good, but the 
science of vocational seledtion is yet in its infancy, and many of 
the psychological te^s recommended are too new to be 
accepted as having ^ood the acid te^ of time. There are, 

12 



SCIENTIFIC BUSINESS MANAGEMENT 

however, simple te^s by which the fitness of candidates can be 
judged, but these mu^ be made in different ways, each suited 
to the requirements of each type of occupation. If, for in^ance, 
book-keepers are to be engaged, nothing could prove their 
quahfications better than would a few book entries made on 
blanks provided for the purpose. They would indicate the 
^andard of knowledge of the theories and pradice of the work,, 
while their arithmetical fitness could be gauged by te^s in long 
and cross tots, or the solution of some problem in arithmetic. 
Additional te^s to these have to be made on such matters as 
analytical detail, general information, observation, etc., but the 
examples given show how the subject might be followed. For 
mechanics other te^ methods mu^ be adopted. For in^ance, if 
they are to be engaged in operations where blue prints or written 
in^rudions have to be followed, some te^ mult be given from 
which their powers of concentration and imitation can be judged. 
This can be done by devising some te^ scheme which they mu^ 
imitate and complete, so that their fitness for the work may be 
judged. There is also the terminology te^, in which a few 
well-arranged technical terms can be put before them to ascertain 
the extent of their knowledge of the terms common to their 
occupation. These could be supplemented by a number of 
definite trade efficiency te^s, but in the early ^eps of scientific 
management it might not always be pradicable to do so. It is 
important that every worker should underhand the relationship 
of his own job to the work of the whole e^abHshment. This 
can be brought about by putting a new worker through as many 
difi;erent departments as possible. Boys may be put successively 
under the care of the foremen of the various shops. 

Training in Efficiency. 

The new workers having been engaged, it is requisite that 
they should be trained in the mo^ efficient ways of executing the 
operation on which employment has been obtained. This 
makes it necessary that the employees should have a thorough 
knowledge of the ideals and methods of their new employers, 
and the simplest way of furnishing this information is through 
the medium of a complete set of rules and regulations. Not 
only should safety and sanitation regulations be clearly defined, 
but it mu^ be put to the worker's reason that discipline is as 
much for their good as for the firm's. It mu^ be pointed out 
that, while they are not machines, ^ated hours mu^ be kept 
and certain methods followed in their work. They mu^ be 
encouraged to aspire to higher positions than those for which 

13 



RECONSTRUCTION PROBLEMS 



they have been engaged, and it mu^ be explained to them that 
to fulfil their desires in that direction ^udy and attention to 
their work is requisite. The inducements and benefits offered 
by the employer mu^ be definitely ^ated, as also the rewards, 
if any, granted for sugge^ions for the betterment of the enter- 
prise. With these rules before them, employees have a clear 
under^anding not only of the firm, its methods and ideals, 
but also of themselves and their future progress. 

Having ^died the rules, employees should be trained in the 
mo^ efficient ways of completing the work for which they have 
been engaged. This training should not be given at a machine, 
bench or desk where other workers will be di^urbed, but, if 
possible, in a separate part of the work-place imder a special 
in^rudor, so that the fuUy-trained workers be not hindered by 
requests for assi^ance from the untrained employee. This 
is not so difficult nor so expensive as might be imagined, as the 
time spent in technical in^rudlion is adequately repaid by the 
increased efficiency of the new workers when they enter the 
producing force. 

Motion Study. 

Attention should be paid to the importance of motion ^udy, 
and not only new but old employees should be trained so to 
complete a task that it is executed on a minimum of time 
expenditure and physical energy with a maximum of efficiency. 
This is a ^dy to which little consideration has been given in 
this country. It has not been overlooked altogether, for some 
of its principles are being a<5ted upon as common-sense laws, 
but, if more extensively adopted, it would produce more noticeable 
results. To this end the variables governing every motion 
mu^ be noted and an accurate analysis made of the existing 
method of operation. Steps mu^ then be taken to eliminate 
any unnecessary movement at the task or to improve it by the 
introdudion of new appliances or the alteration of the methods 
so that completion is facilitated in shorter time and with the 
expenditure of less energy. Once the be^ sy^em has been 
deduced from this amended analysis, a number of accepted 
laws or rules of procedure can be e^abHshed and what might 
be described as a ^andard practice introduced. 

It is a ^dy that requires not only the exercise of mental 
ability but also mechanical ingenuity, and its benefits are such 
that diey can be brought to bear as successftilly in the work-place 
as in the office. The mo^ frequently quoted examples of its 
successful application are those of the clerk damping envelopes, 

14 



SCIENTIFIC BUSINESS MANAGEMENT 

the bricklayer building the wall, and the mechanic at his machine, 
in each of which the ^andard of output was either tripled or 
quadrupled, the worker's fatigue reduced, and a higher earning 
power automatically gained. These are, however, not by any 
means the only cases that could be cited. It is a subjed that 
is equally as important to employees as to employers, for the 
only way to obtain a higher ^andard of wages with fewer working 
hours is to introduce improved methods of production in which 
full value is received from the worker's energy with a minimum 
of physical exhau^ion. Motion ^udy is one of the means by 
which this can be accomplished. It does not demand increased 
exertion from the workers, but, on the contrary, reduces it. 
It does, however, necessitate the exercise of their full mental 
faculties, and in such a peculiar way that the employer and 
executive head mu^ co-operate with them, if success is to be 
obtained. 



15 



RECONSTRUCTION PROBLEMS 



Reconstruction Problems : Pamphlets od. (2d. each) 
(i) Aims of Reconstruction. 

(2) Housing in England and Wales. 

(3) Demobilisation of the Army. (Out of Print.) 

(4) Housing in Scotiand. 

(5) New Fields for British Engineering. 

(6) Raw Materials and Employment. 

(7) Guide to Work and Benefits for Soldiers and Civil 

War Workers. (Out of Print.) 

(8) Re-Settiement of Civil War Workers. 

(9) Naval Demobilisation. 
[id) Labour Conditions and Adult Education. 
'11) Commercial Forestry. 
'12) The Re-Settiement of Officers. I. — Army and R.A.F. 

n. — Navy. 
'13) Rural Industries. 
^14) Food Production. 
[15) Juvenile Employment. 
^16) Prices during the War and After. 
[17) Art and Industry. 

^18) Industrial Councils : The Whitiey Scheme. 
[19) State Regulation of Wages. 
^20) Land Settiement. 

(21) The Classics in British Education. 

[22) Domestic Service. 

(23) PubHc Health. I.-A Survey. II. -A Ministry of Health. 

[24) Electrical Development. 

(25) Tovm Planning. 

[26) Natural Science in British Education. 

[27) Ofl&cers' Guide to Civil Careers. 

(28) Scientific Business Management. 

These publications may be purchased through any Bookseller 
or directiy from H.M. Stationery Office at Imperial House, 
Kingsway, London, W.C. 2 ; and the other addresses on page 4 
of cover. 

16 



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PUBLISHED BY HIS MAJESTY'S STATIONERY OFFICE. 

To be purchased through any Bookseller or directly from 
H.M. STATIONERY OFFICE at the following addresses : 
Imperial House, Kingsway, London, W.C. 2, and 
28 Abingdon Street, London, S.W. 1 ; 
37 Peter Street, Manchester ; 
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or from E. PONSONBY. Ltd., 116 Grafton Street, Dublin, 

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